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REFI NEWS
3
THE REFI
NEWS—ISSUE
3
Your Guide to Home
Mortgage Refinancing
and Credit-Related
Issues
In This
Issue
When
It Comes To
Debt,
an Ounce of Prevention
Is Worth a Pound of
Cure!
In
today’s
economic climate,
debt has become a
serious issue for
individuals and
families
throughout the
United States.
Between home
loans, car loans,
personal loans,
and credit cards,
debt-related
problems can
easily become a
burden, affecting
our financial
health. By
following these
simple tips, it
may be possible
to keep debt from
becoming an
obstacle to
maintaining good
credit:
-
Pay
loans first.
Missed
payments hurt
your credit
rating. By
making your
loan payments
first every
month, before
treating
yourself to
any new
purchases,
you avoid
putting
yourself in a
position
where you are
short on cash
when the
bills
come.
-
Pay
off credit
cards every
month. If
this is
difficult to
do, cut the
cards up so
you do not
use them.
Credit cards
are like
loans, with
interest
amounts that
increase for
every month
you do not
pay them
down. Ask
yourself
– would
you really
take out a
loan to buy
that new pair
of
“must
have”
shoes?
-
Avoid
large credit
limits.
Credit card
companies are
happy to
extend credit
limits. The
larger your
credit
balance, the
more money
they make.
Unfortunately,
the larger
your credit
balance, the
greater your
temptation to
charge large
purchases you
cannot pay
off the next
month!
-
Only
apply for the
credit you
need. Every
store offers
a free gift
or discount
for opening
an account
with them,
and it is
tempting to
have a card
for every
store. Keep
in mind that
all these
applications
appear on
your credit
report, which
could make it
appear to
creditors
that you are
having
cash-flow
problems.
-
Choose a
credit card
with a low
interest
rate, no
annual fee
and no
upfront fees.
There may be
months where
you can only
make the
minimum
payment. By
choosing a
credit card
company with
a low
interest
rate, you
avoid
excessive
interest
charges on
unpaid
balances.
Before
switching,
call your
present card
company. Most
will
negotiate a
lower rate
rather than
lose you as a
customer.
-
Pay
off loans
before making
an
investment.
In most
instances,
the interest
rate charged
by loans and
credit cards
is higher
than the
return you
may earn on
an
investment,
meaning the
investment
could
actually cost
you
money!
-
Keep
track of
bills and
past due
notices. Do
not think a
debt has
disappeared
just because
you stop
receiving
notices. If
you still
have a
balance due
on a loan but
have not
received a
bill, contact
the lender.
It is
possible that
an
administrative
error is
preventing
the bills
from reaching
you, but that
does not
eliminate
your
obligation to
pay them. And
yes, they
will
eventually
find
you.
For more
information on
credit and debt,
see our
‘Ask
Steve’
feature
Sources: NAACP
Financial Empowerment
Guide, bankrate.com
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To
Top-
Think Twice About Major
Home Improvements Prior
to Selling
Home improvements can
add value to your
house, but if you
invest in the upgrades
when it's time to sell,
don't expect the buyer
to pay for them. While
certain features such
as fireplaces, bathroom
renovations or central
air conditioning
improve a home's value,
it does not necessarily
mean that they will
return enough added
value to cover their
cost. What's more, not
only will you spend
money you could use on
your new home, the
buyer may not even like
what you've done.
Instead of major
investments, you may be
better off putting the
best face on what you
have, with some minor
cosmetic touches. Here
are some simple and
inexpensive tips that
can really help your
house look its
best:
-
Concentrate
on curb
appeal
– prune
trees and
shrubs, and
keep the lawn
mowed.
-
Clean up
everything
you can,
especially
the basement,
garage and
closets.
-
Remove
clutter
wherever
possible.
-
Fix
leaky
faucets,
squeaky
doors, and
broken lights
and windows
(including
screens).
-
Add
a coat of
paint to any
rooms that
look
particularly
dingy.
Some
minor repairs and
good
old-fashioned
elbow grease may
be just
what your home needs
to make it shine!
-Back To
Top-
THE HOMESTAR
DIRECT LOAN FROM METROCITIES
A NEW BREED OF MORTGAGE
COMPANY
There is nothing more
rewarding than
experiencing
personalized,
world-class service.
Our
fundamental 5-Star
philosophy reflects
this commitment, by
putting the customer at
the center of
everything we do.
Here’s what some
of our customers have
to say about the loan
officers who made their
Homestar Direct
Mortgage a Five5-Star
Experience:
“I
wanted to take a
moment to thank
your company for
having Loan
Officers such as
Jon Chavez. I
have refinanced
before and was
not looking
forward to going
through the
process again
until Jon showed
me how stress
free it could be.
He was courteous,
informative,
honest and always
looking out for
my best
interests. I
would not
hesitate to
recommend Jon to
family and
friends wanting
to
refinance.”
-Pamela Benny,
Egg Harbor
Township
“…Thank
you for all your
help and the time
you spent with me
in making sure
that everything
worked out
perfectly…
I will definitely
recommend my
friends and
family to work
with you.”
(letter to Nancy Sommers,
Underwriter) -Rob
Rosen President,
Plastimach
Corp
-Back To
Top-
Our Associates
“Make a
Difference”
We
are committed to making
your refinance process
as simple as possible.
Our “Make a
Difference”
initiative recognizes
the achievements of our
loan officers and staff
in going above and
beyond the call of
duty.
Robert
“The Hammer”
Siegler
Senior Loan
Officer
It’s
been some time
now since Bob
Siegler was a
high school
student working
at Merrill Lynch,
where he earned
the nickname
“Hammer”
for his
persistence and
commitment to
getting the job
done. But seeing
him in action
assisting
customers
for the past
three and a half
years explains
why the nickname
still continues
to stick.
“I do
whatever it takes
to give the best
possible service
to my
customers,”
explains Bob.
“If that
means working 6-7
days a week to
stay on top of my
business, then
that’s what
I
do.”
Bob is a
firm believer
that customer
satisfaction
happens when loan
officers take the
time to ask the
right questions
from the
beginning of the
relationship.
“It’s
important to
understand your
customers’
goals and
objectives from
the start. Only
then can you help
them take full
advantage of what
we have to offer.
Knowledge is
critical. Staying
on top of market
trends and new
product offerings
helps me explore
all possibilities
to ensure I
recommend the
best course of
action for my
customers, once I
understand what
they are looking
to
achieve.”
How Bob
Siegler Has
“Made a
Difference”
for His
Customers:
“This
was not my first
experience
working with Mr.
Siegler, and in
fact, when we
were ready to
refinance our
home we made it a
point to seek him
out…We
contacted a few
companies before
turning back to
Mr. Siegler,
because we were
lured by promises
that could not be
kept. Mr. Siegler
told us on day
one what the rate
and terms of our
refinance would
be and everything
unfolded exactly
as he said it
would. He is
knowledgeable,
honest and
straight to the
point and it was
once again a
pleasure working
with
him.”-Marie
A. Crozier, Palm
Springs,
FL
-Back To
Top-
ASK
STEVE
What is a credit
score, how is it
calculated, and how
does it affect my
ability to secure a
mortgage?
A credit score is a
value assigned to
several criteria that
are used in making
lending decisions. The
amount you owe on
non–mortgage–related
accounts such as credit
cards, as well as your
payment and credit
history are taken from
your credit report and
plugged into formulas
that calculate a value
representing the amount
of risk you pose to a
lender. Lenders use the
score as a barometer to
determine if it’s
a good idea to extend
you credit. The higher
your credit score, the
better the indication
of a good credit
reputation. The scores
can also affect the
mortgage interest rates
available to you, and
the loan-origination
fees you are charged.
Typically, borrowers
with high credit scores
are able to secure
mortgages at lower
rates and with lower
loan-origination fees
than those applicants
with lower scores
(under 650).
The
common scoring
methodology was
developed by
Fair, Issac and
Co., Inc. –
which is why you
may see it
referred to as a
FICO score. Fair,
Isaac calculates
their widely used
FICO credit score
on a scale
ranging from 300
to 850 and
higher.
I have
not been able to
make some of my
mortgage
payments. How can
I avoid
foreclosure?
When you miss mortgage
payments, foreclosure
may occur. If you have
fallen behind, it is
critical not to avoid
your mortgage company.
If you are having
problems making
payments, contact your
mortgage company
immediately. Explain
the situation and try
to work with them to
come up with a
solution. Your mortgage
company may provide a
temporary reduction or
even suspension of your
payments for a period
of time. You may
qualify for this if you
recently lost your job
or your source of
income. Mortgage
companies will also
consider putting you
into a repayment plan
that will enable you to
make regular monthly
payments in addition to
a payment that will be
applied towards
arrears.
I cannot
stress this
enough – Do
not avoid your
mortgage company!
It is not in your
mortgage
company’s
best interest
– or in
yours – to
enter into a
foreclosure
situation. The
majority of
lenders will work
with you to
create a
satisfactory
solution, as long
as you are open
and truthful
about your
situation.
Steven
P. Weiss, Branch
Manager of
the Homestar Direct group of
Metrocities,
has assisted
customers with
mortgage and
financial issues
for over 20
years. Steve
invites readers
to contact him
with their
mortgage related
questions at
Homestar Direct,
115 West Century
Road, Paramus NJ
07652-1450, or
emailing him at sweiss@homestar.com.
Select questions
will be printed
in future issues
of The Refi
News.
Brand New Service
Guarantee...
If after closing a
loan with us you are
not completely
satisfied with our
service, simply write
us a letter within 14
days of closing,
explaining why and we
will pay you $500
– no strings
attached.
Yes, our service is
that good!
Call
Toll Free: (800)
684-8853
www.HomestarDirect.com
-Back To
Top-
Disclaimer:
The content of
this newsletter
is for general
information
purposes only. It
is not intended
as financial or
investment advice
and should not be
construed or
relied on as
such. Before
making any
commitment of a
financial nature
you should seek
advice from a
qualified and
registered
financial or
investment
adviser.
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